Although the State of Ceara, in Brazil,is a model of good economic, and fiscal performance givenits poverty status, recent analysis show poverty remainssevere, in spite of significant reductions over the lastdecade. The combination of good governance, and sound fiscalmanagement, industrial promotion, and public investmentshave been successful, but the report questions whetherdifferent policies, could have led to higher growth, andpoverty reduction, or, whether it is simply a matter of timeto further reduce poverty rates. Arguably, Ceara cancontinue to develop economically, based on favorable assets,such as agriculture, or tourism, on a large labor force withwages comparatively low by Brazilian standards, and onfiscal responsibility. But development is constrained by lowproductivity, low education levels, and by large populationsliving in stagnant regions, where water accessibility islimited. While alternatives either suggest to: strengthenthe existing policy on industry development; focus onmassive public investments, namely education, andinfrastructure; or, exercise an explicit welfare strategy,recommendations stipulate improvements in education,development of public-private partnerships, removal ofindustrial incentives through reform policies,implementation of institutional framework for water resourcemanagement, and, overall social safety nets to reduce poverty.
PDF
download
878987797
028-85220240
